Financial Services Law 2021 – changes to PDMR notifications

The Financial Services Act 2021 (the “Act”) received Royal Assent and is now law.

What does this mean for issuers?

PDMR transactions – notification schedule

Persons with managerial responsibilities (“PDMR”) and persons closely associated with them have an obligation under the UK Market Abuse Regulation (“MAR”) to notify the FCA and the issuer of any transactions in the shares of the issuer no later than three working days (previously working days) after the date of the transaction. In addition, the issuer was previously required to make this information public within the same timeframe.

Under the changes to the law, the issuer must now notify the market of PDMR transactions within two “business days” of receiving a notification from the PDMR. “Working days” means a day other than Saturday, Sunday, public holidays, Christmas Day or Good Friday.

It is expected that these changes will be well received by the market.

Criminal offense for insider trading

The law also extended the criminal offense of insider trading from seven to ten years under the 1993 Criminal Justice Act.

Insider Lists

Minor changes have been made to Article 18 of the MAR (Insider Lists), including clarifying that when another person is invited by the issuer to establish and update the insider list of the issuer, the issuer will remain fully responsible for complying with the obligations provided for in article 18.

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